Worldline - 2020 Universal Registration Document

RISK ANALYSIS Risk management activities

Compliance Risk The Group has in place various policies, ranging from the compliance charter to the Anti-Bribery and Anti-Corruption policy designed to tackle any noncompliance risk. Compliance risk is defined as the exposure to fines or penalties, financial impacts, material losses, reputational damage or the inability to operate in key markets, Worldline may face as a result of its failure to comply with specific laws, regulations and ethical principles (as outlined in the Code of Ethics).

In the Compliance area, Worldline is subject to a wide array of stringent regulations, particularly in the following fields: competition law, corruption, controls on exports of dual-use goods, data protection, human rights, international sanctions, fraud, harassment and discrimination, money laundering and terrorist financing. Worldline has established a specific Compliance risk mapping which is performed by the Global Business Lines and Management Units Compliance Coordinators, leading to a Compliance Risk Heat Map allowing the Compliance function to identify clearly the main compliance risks and define related mitigation actions to be put in place. for property damage and business interruption, with a coverage limit of € 49.9 million. The Group is insured under certain other policies covering other insurable risks for an amount adequate for the risks incurred, taking into account the size of, and risks incurred by the Worldline Group. Deductibles are set at a level intended to encourage good risk management and to control premium costs. The Group also maintains policies required for regulatory reasons. Worldline Group formed in 2019 a dedicated reinsurance company which it wholly owns, Worldline Ré. This reinsurance company covers the Worldline Group’s entities in respect of certain portions of the General and Commercial Liability and Professional Indemnity policy. The insured risks of the dedicated reinsurance company are also monitored by the subscription Committee of the reinsurance company, which ensures that capital and technical reserves are sufficient for the risks incurred and seeks a satisfactory level of diversity in reinsurers.

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Insurance

Worldline Group identifies the principal insurable risks and quantifies their potential consequences for Worldline, and defines the policy with respect to insurances. The Worldline Group entities are covered by the master insurance policies maintained by Worldline, under which they are insured parties and which are centrally negotiated by the Worldline Group. The policies offer coverage for risks regarding property damage and business interruption, general and commercial liability and professional indemnity, cyber-criminality, crime, Directors & Officers liability, and others. As such, Worldline Group, including the entities of Ingenico, is covered for General and Commercial Liability and Professional Indemnity insurance with a coverage limit of € 80 million in 2021. Also, Worldline has set up a property damage and business interruption policy, valid until December 31, 2021, with a coverage limit of € 180 million. Integration of Ingenico entities into this policy will happen in 2022. Until December 31 st , 2021, Ingenico is still covered by a long term insurance agreement

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Universal Registration Document 2020

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